Cannabis Science Inc. Reports on Litigation Settlement and Debt Elimination A Vote of Confidence in Dr. Melamede, and "The Huge Potential of Our Company"
COLORADO SPRINGS, Colo.--(BUSINESS WIRE)--Cannabis Science Inc. (NASD OTCBB: CBIS), an emerging pharmaceutical cannabis company, reported today that it has settled pending litigation with K & D Equity Investments, Inc. and South Beach Live, Inc., and reached agreements with its largest creditors to convert their debt for shares.
Richard Cowan, CFO, stated, “Settlement of the K & D and South Beach lawsuits frees up our management team to focus on testing and launching our new OTC products, and removes an impediment to traditional funding mechanisms. The biggest news here is dropping debt, which significantly improves our balance sheet and gives us the ability to leverage our product roll-outs. I think that this settlement is also a vote of confidence in Dr. Melamede, and a recognition of the huge potential of our company.”
The agreements provide for the issuance of 3,680,000 shares of common stock in settlement of the K & D and South Beach litigation. The litigation concerned provisions of the original Asset Acquisition Agreement between K & D and Cannex Thereapeutics, and debt incurred by South Beach for the Company’s operating expenses. Cowan explained, “It is very positive that the Company will extinguish nearly $900,000 in debt owed to creditors, eliminating over half of its current liabilities, as part of these agreements.”
Dr. Robert Melamede, CEO and President, added, “We’re pleased to have this litigation behind us. Apart from the financing options that now open up, this lets me and our exemplary advisory boards get back to the science of cannabis and the development and exploitation of cannabis-based drugs and nutraceuticals for the consumer market. We are especially interested in partial cannabis extracts, which appear to provide substantial health benefits without triggering DEA prohibitions, and the prospect of OTC nutraceutical formulations from our research. This is a great time for cannabis science, generally and our company in particular.”
About Cannabis Science, Inc.
Cannabis Science, Inc. is at the forefront of medical marijuana research and development. The Company works with world authorities on phytocannabinoid science targeting critical illnesses, and adheres to scientific methodologies to develop, produce, and commercialize phytocannabinoid-based pharmaceutical products. In sum, we are dedicated to the creation of cannabis-based medicines, both with and without psychoactive properties, to treat disease and the symptoms of disease, as well as for general health maintenance.
Forward Looking Statements
This Press Release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement containing works such as “anticipate,” “seek,” intend,” “believe,” “plan,” “estimate,” “expect,” "project," "plan," or similar phrases may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based drugs. Cannabis Science, Inc. does not undertake any duty nor does it intend to update the results of these forward-looking statements.